UNESCAP APCAEM : Regional Forum on Bio-energy Sector Development. Dr. Chang-Gil Kim

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1 UNESCAP APCAEM : Regional Forum on Bio-energy Sector Development Dr. Chang-Gil Kim

2 Contents I Introduction II Contents of the Kyoto Protocol and Post-2012 Discussions III IV V Instruments for GHGs Control in Ag-Sector Impacts of Reduction Measures and Their Potential Strategy for GHG Reduction Commitment in Ag-Sector VI Concluding Remarks

3 Ⅰ Introduction

4 Research Backgrounds and Objective Backgrounds Mandatory emission reduction under Kyoto Protocol (KP) - Significant Impact on national economy and agricultural sector including production and consumption activities - Positive or negative aspect of reducing GHGs in Ag-sector Depending on how to comply with the KP, it might work either as a threat or as an opportunity for the Ag-sector Study Objective Analyze impacts on the Ag-sector and propose systematic measures for the Ag-sector to comply with the KP

5 Ⅱ Contents of the Kyoto Protocol and Post-2012 Discussions

6 Major Contents of the Kyoto Protocol UN Framework Convention on Climate Change (UNFCCC) stabilizing GHGs concentrations in the atmosphere - common and differentiated responsibility principles and cost- efficient implementing measures to prevent climate change Kyoto Protocol legally binding international agreement by which the COP3 commit each developed country to a target to reduce GHGs emission level - preamble, 28 articles and 2 annexes - definitions of major terms, measures for GHG reduction, reduction commitment for Annex I countries, GHG calculation ation method, preparation and submission of national communication

7 Kyoto Protocol clarification of GHG source and sinks in agriculture - source: enteric fermentation, manure management, rice cultivation, agricultural soils, prescribed burning of savannas, field burning of agricultural residues - sink: land use, land-use change and forestry activities (LULUCF) - reservoirs : storing carbon in soils policies and measures for GHG reduction - enhancement of energy efficiency - taxation and subsidies - environmentally sound clean technologies - research and development - international cooperation

8 Mechanism of KP Implementation Kyoto Mechanism achieving at the minimum cost GHGs reduction targets with Emission Trading, Joint Implementation, and Clean Development Mechanism <Operating System of the Kyoto Mechanism> Emission Trading Country A Annex ⅠCountries (Developed Countries) Amount Allocated > Amount of Emission Emission Credit sale Payment Country B Annex ⅠCountries (Developed Countries) Amount Allocated < Amount of Emission Joint Implementation Country A Annex ⅠCountries (Developed Countries) Amount Allocated > Amount of Emission Certain Portion of ERU Validation of ERUs Capital, Technology, Manpower Country B Annex ⅠCountries (Developed Countries) Amount Allocated < Amount of Emission Clean Development Mechanism Country A Non-Annex ⅠCountries (Developing Countries) Amount Allocated, Amount of Emission Certain Portion of ERU Securing of CERs Capital, Technology, Manpower Country B Annex ⅠCountries (Developed Countries) Amount Allocated < Amount of Emission

9 Trend / Prospect of Discussion on Post Mechanism Discussions on post-2012 mechanism UN process - continued discussion in the COP (Conference of Parties) - COP 13 - Bali Plan of Action (Bali Roadmap) in December 2007 calling for all countries reduce GHG emission starting in COP 15 - conference in Copenhagen 2009 (Copenhagen Protocol) last time on government level before the climate agreement ent need to be renewed Major countries process centering on the USA - 17 top GHG emitters meeting at Washington in technologies promotion through R&D, financial mechanism, land use, energy efficiency adaptation - standpoint of new US administration to be launched in January 2009

10 Ⅲ Instruments for GHGs Control in Ag-Sector

11 Means of GHGs Reduction Economic Instruments using market mechanism Tax system carbon tax and GHG tax Emission trading system setting credit and permitting trade Subsidy financial incentive Regulation emission standards emission cap, chemical fertilizers spreading standard, manure and liquid fertilizer spraying standard, breeding density y regulation Voluntary Agreement Good farming practice, voluntary resource-recycling recycling village R&D, Information provision and Public awareness enhancement

12 Key Measures of GHGs Control under the KP Emission Trading System Suggested by the Kyoto Protocol (Article#17) - scheme for assigning GHG quota to each country and credit trading in order to reduce the reduction cost and to facilitate the emission reduction - types of credits : Assigned Amount Unit (AAU), Emission Reduction Unit (ERU), Removal Unit (RU), Certified Emission ion Reduction (CER) Domestic Emission Trading System - giving credits to those under agricultural sector who achieve emission reduction so as to substantially compensate for r them. - environmental credit trading system in the USA ag-sector

13 Key Measures of GHGs Control under the KP Clean Development Mechanism (CDM) Validation and Verification of CDM Project - Document Review, On-site Evaluation, and Verification of Corrective Measures Current Registration of CDM Project (November, 2007) CDM projects (India:( 289, China 131, Brazil 113,, Korea 19) - About 30% projects related to ag-sector 79 projects: CH 4 reduction from livestock manure treatment (Biogas plant using livestock manure) 149 projects : energy projects using biomass (power generation using rice husks)

14 Key Measures of GHGs Control under the KP Utilization of GHG Reduction Technologies Clean technology for reducing CH 4 and N 2 O - Crop cultivation technologies (fertilization control and water management), livestock feeding techniques Organic agricultural and livestock practices Soil Organic Carbon (SOC) Sequestration techniques - soil management, mulched crop cultivation, conservation tillage, no-tillage farming, integrate nutrients management Bio-energy utilization - bio-gas from livestock manure and food wastes - bio-diesel from rapes and oilseed crops - ethanol from corn, sugar cane, potato and sweet potato starch

15 GHG Reduction Technologies in the Agricultural Sector Fields Reduction of CH4 and N2O Formation of pasture on lands in fallow Soil organic carbon sequestration Improvement of rumen fermentation Improvement of livestock manure treatment facilities Utilization of biomass and reduction of fossil fuel use Reduction Technologies Expand organic techniques. and environment-friendly farming Reduce of fossil fuel through the improved farming methods Afforest lands in fallow and form pastures. Cultivate mulched crops on lands in fallow. Perform conservation tillage and crop rotation. Substitute chemical fertilizers with organic substances Improve soil mulch and irrigation methods Improve energy content of feeds and digestion efficiency. Improve breeds of cattle and feed good-quality roughage. Apply ruminant additive (feed additive and microbiological agent). Expand facilities for aerobic treatment of slurry and install covers. Capture methane and turn it into resource Substitute fossil fuels by cultivating bio-energy crops Expand bio-gas and biomass technologies. Power generation using rice husks

16 IV Impacts of Reduction Measures on Ag-Sector and Their Potential

17 Economic Impacts of Emission Reduction Scenario Economic Impacts of Emission Trading System Setting up the scenarios under the reduction commitment level after 2013 based on 5% below 2000 emission levels - used dynamic CGE (computable general equilibrium) model Scenario Scenario 1 Scenario 2 Scenario 3 <Emission Reduction Scenarios to Comply with the KP> Contents Each industry implements its emission reduction target individually (Reduction cost per ton in each industry) All industries meet their reduction targets through ETS Non-agricultural sectors (manufacturing, service, and fossil fuel sectors) are allowed for emission trading, while the agricultural sector implements the reduction commitment individually

18 Analysis of Potentials of Emission Reduction Measures Analytical Results when the agricultural sector participated in emission trading system as a means of greenhouse gas reduction, it would contribute to the national economy as well as increasing the profits of the agricultural sector

19 Analysis of Potentials of Emission Reduction Measures Potentials of GHGs Reduction Measures in Ag-Sector Methane Reduction Potential of Direct Sowing of Rice on Dry Fields Emission Reduction Potential of Soil Organic Carbon in Arable Lands Fossil Fuel Reduction Potential through Cultivation of Energy Crop Emission Reduction Potential of Rumen Fermentation Improvement and Manure Treatment Facilities in Livestock Sector

20 Total Emission and Reduction Emission Potentials Unit: 1,000 tco 2 Allowable Emission Level Reduction Capacity of Arable Lands Soil Organic Carbon Squestration Production of Bioenergy Reduction Capacity of livestock Managemen

21 V Strategy for GHGs Reduction Commitment in Ag-Sector

22 Approach to Formulating Practical Strategies Basic Directions for Establishing Eco-friendly Low Carbon Farming System Optimal policy mix through policy integration and coordination Actively Coping with inter- and intra-national national negotiation with relation to GHGs emission reduction Carbon sinks and reduction potential to be estimated on a basis of scientific analyses Feasible adaptation programs should be developed and carried out in the fields in order to cope with climate change

23 <Measures to cope with Kyoto Protocol in Korea> Establishment of Eco-friendly Low Carbon Production System GHG emission reduction Extension of GHG emissions reduction technology. GHG emissions reduction incentive Promotion of sound organic farming Setting up a foundation of utilizing Kyoto Mechanism. Carbon sinks Extension of carbon sequestration techniques. Encourage farmers to grow bio-energy crops Commercialize bio-gas plant from livestock manure. Identify carbon sinks and sequestration in farmlands. Adaptation to climate changes Establishment of ecological monitoring system. Setting up climate information system Development of adaptation in climate changes and R&D Set up global warming and adaptive system to climate changes Establishment of national GHG emissions inventory, developing domestic emissions factor Identification of GHG emissions / sinks mechanism and establishing carbon balance model Estimation crop production quantity, predicting agricultural flora, and setting up adaptive system (early warning system in agricultural sector)

24 <Roadmap for Activating Measures> Initial stage ( ) Interim stage ( ) Final stage ( ) GHG Emissions Reduction GHG Sinks Adaptation to Climate Change Provide subsidy &supports Energy saving campaigns Develop and spread GHG emissions reduction Increase bio-energy crops Execute emission trading system/ CDM pilot project Clarify organic carbon's role in soils Estimate accumulated organic carbon and set up a system of using it Establish the model for productivity forecast and flora evaluation. Set up eco agricultural monitoring system. Map out adaptive croplands and crop distribution. Develop adaptive species to climate changes. Set up GHG emissions DB. Establish bio-energy production system Establish emission trading system Apply incentives and programs for carbon sinks. Make pubic the methods of using sink sources. Prepare and distribute antiglobal warming manuals. Set up weather info & early warning system. Set up adaptation to climate changes & training system Supplement GHG emission reduction programs. Set up low carbon farming system. Establish GHG reduction BMP Utilize GHG sinks. Set up maximized carbon sink farming system Distribute adaptation manuals Set up adaptation system Set up crop transformation evaluation system

25 Measures to Comply with the GHG Reduction Commitment CDM Pilot Project in the Ag-Sector Initiation of CDM projects in the domestic agricultural sector - executive program should be established to validate greenhouse gas reduction potentials of livestock manure treatment facilities, biob io-mass generation and bio-fuel utilization. - For validation, greenhouse gas emission from each project unit should be calculated and applicable conditions of baselines and monitoring ing methodologies currently in use for CDM projects should be reviewed ed in depth. For step-by by-step implementation of CDM pilot projects in the domestic agricultural sector - clear understanding of how to calculate the amount of greenhouse e gas emissions from each source in the agricultural sector should precede. - proper emission calculation methods should be devised in consideration of regional characteristics - then, accumulated knowledge of and experiences in technologies to reduce greenhouse gases from their sources should be provided.

26 Bio-gas plant for livestock manure treatment

27 Measures to Comply with the GHG Reduction Commitment Utilization of Emission Trading System in Ag-Sector Under ETS, every country assigns emission units to firms and sectors in it to meet the reduction target assigned to it, and the firms that do not meet the assigned reduction targets are induced to certified emission reductions from the firms of other countries. Illustrated example of environmental credit trading system in the e USA - The environmental credit system allows firms under regulation to meet their reduction targets through emission reduction service credits trading. - Though the agriculture does not come under most of environmental regulations, farmers could participate in the credit trading program by producing emission reduction credits and selling them to the firms under regulation. - When the cost of producing emission reduction credits is lower than the price of the credits, the farmers could make profits, so that they would actively participate in the ETS.

28 V Concluding Remarks

29 Summary and Concluding Remarks Summary of the Paper Policies olicies for establishing measures to comply with the KP in as-sector sector - Establishing low-carbon sustainable agricultural system through policy mix, positively and actively coping with the domestic and international negotiations, scientifically analyzing the amounts of greenhouse gas emission and capture, and adapting to global warming - Implementation strategy for the agricultural sector to be approached ached in 3 stages with 2030 as the target year such as foundation establishment stage (2008~2012), take-off stage (2013~2018) and settlement stage (2019~2030). - A stage-by by-stage road map presented to establish an environment- friendly low-carbon agricultural production system through program implementation in each sector of greenhouse gas reduction, capture and adaptation.

30 Measures to Comply with the GHG Reduction Commitment Recommendation for the Forum Significance of CDM as one of co-operative operative mechanisms - CDM project is the only one, which has potential to assist developing countries in achieving sustainable development by promoting environmentally friendly investment from industrialized country government and business. - For catalyzing green investment priorities in developing countries, the CDM offers an opportunity to make progress simultaneously usly on climate, development, and local environmental issue. - For developing counties that might otherwise be preoccupied with immediate economic and social needs, the prospect of such s benefits should provide a strong incentive to participating in the CDM.

31 Measures to Comply with the GHG Reduction Commitment Concluding Remarks for Initiating Platform on CDM Project - The developing countries like Asian-Pacific countries can benefit from this mechanism as the CDM not only can attract capital al for projects that assist a more prosperous but less greenhouse gas-intensive economy but also provide a tool for technology transfer, if investment is channeled into projects that replace technologies which lead to high emissions. - Thus, given the potential of CDM in the Asian-Pacific countries, concerted research and policy efforts are required to transform this potential into actual CDM projects in the agricultural al sector.

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